ABACO Ltd pioneers application of Article 26 in representation of Adriatic Shipyard Bijela SA
September 19, 2018.
ABACO Ltd pioneers application of Article 26 in representation of Adriatic Shipyard Bijela SA
Source: Abaco’s archive
ABACO Ltd is pleased to announce its successful engagement as legal representative of Adriatic Shipyard Bijela SA in a series of administrative and judicial proceedings before the competent authorities of Montenegro, including the Ministry of Transport and Maritime Affairs, the Harbour Master’s Office in Kotor, the Maritime Safety Administration, and the Commercial Court of Montenegro.
These proceedings concerned the enforcement of claims arising from the long-term custody of three vessels, namely “EUROPA-92,” “EDUS,” and “BOKA WAVE”, which had remained abandoned within the port area of the Bijela shipyard for nearly a decade. The vessels had been left without crew, ownership, or operational oversight, and no remuneration had been provided for repair services or berthing fees.
In response, Adriatic Shipyard Bijela SA initiated legal action to recover outstanding costs pursuant to Article 26 of the Law on Maritime Navigation Safety (“Official Gazette of Montenegro,” Nos. 62/13 and 06/14).
ABACO Ltd had the distinction of being the first law firm to invoke Article 26 of the aforementioned law, enacted in 2013, in the context of enforcement proceedings concerning abandoned vessels. Under this provision, vessels that have been deserted by their crew or pose a demonstrable risk to navigational safety, port infrastructure, or human life may be subject to urgent judicial sales.
Following a formal request for inspection and risk assessment, the Maritime Safety Administration confirmed that the subject vessels met the statutory criteria for abandonment and posed imminent risks of sinking and harm to navigational safety, port operations, and persons or property within the port area or aboard vessels.
Consequently, the Maritime Safety Administration submitted a petition to the Commercial Court of Montenegro for the expedited judicial sale of the vessels by way of court auction. ABACO Ltd represented Adriatic Shipyard Bijela SA before the Commercial Court throughout the enforcement proceedings conducted under the Maritime and Inland Navigation Act, with subsidiary application of the Law on Enforcement and Security.
The proceedings culminated in the successful judicial sale of the vessels, thereby enabling Adriatic Shipyard Bijela SA to recover its claims and release the operational quay. Most notably, the removal of the abandoned vessels eliminated ongoing risks to maritime safety, environment and port infrastructure.
ABACO Ltd remains committed to advancing legal solutions in complex maritime and commercial matters, and to setting precedent in the application of statutory mechanisms for the protection of port operations, environment and maritime safety.